Absent Airbnb hosts set to lose tax break

The government is introducing a residency test , which will disqualify owners who do not spend time at the propertyJOHN MACDOUGALL/GETTY IMAGES

Some Airbnb hosts could lose a key tax break under plans that have been put forward by ministers.

People who let homes on Airbnb or run bed and breakfasts would no longer be able to earn up to £7,500 a year free of tax unless they live in the property. In practice many rent out whole properties or rooms in properties in which they do not live.

The Rent a Room scheme allows homeowners to let furnished rooms and earn up to £7,500 tax-free. It has been the subject of a consultation after concerns that people who host properties on Airbnb and similar websites were benefiting from a tax break designed to create more low-cost housing.

The Treasury has announced that it will keep the…

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